The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

Costco Wholesale Corporation (NASDAQ:COST) is one of the 10 Best Stocks to Buy According to Billionaire Richard Chilton.

Membership warehouse retailer Costco Wholesale Corporation (NASDAQ:COST)'s shares are down by 2.4% over the past year and are up by 12.3% year-to-date. The firm reported its latest sales figure earlier this month and posted $24 billion in net sales for May, which marked a 14.5% annual growth. For the first 39 weeks of the year, Costco Wholesale Corporation (NASDAQ:COST) posted $221.9 billion in net sales to mark a 10% annual growth. Morgan Stanley discussed the firm on May 29th as it reiterated a Buy rating and a $1,130 share price target. The bank commented on Costco Wholesale Corporation (NASDAQ:COST)'s strong business as part of its coverage to remark that its supply chain, scale and value proposition could lead to strong performance in today's tough environment.

Costco Wholesale Corporation (NASDAQ:COST)'s shares trade at a hefty forward P/E multiple of 41.84, which is significantly higher than the market's 21.

Niloo / Shutterstock.com

It is also a favorite stock of CNBC's Jim Cramer. In a recent appearance on Mad Money, the TV host remarked:

"Okay… I think that you buy some here, it's at 47 times earnings, and then you hope it goes to 45. Now, I know people say, what do you mean, buy some and then hope it goes lower, but that's how I work. I want value just like I want value at a store. And I think if you start Costco and you let it come in a little, well, that's the way to play it. The worst that happens is it flies right out, 974 to 1025, and you have to kick it out. Let's do it that way so that we don't get caught up at one level because nobody's that good."

While we acknowledge the potential of COST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.

Disclosure: None. Follow Insider Monkey on Google News.